THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY ACT, 2013 

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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMININARY 

SECTIONS 

1.  Short title, extent and commencement. 

2.  Definitions. 

CHAPTER II 

PENSION FUND REGULATORY AND DEVELOMENT AUTHORITY 

3.  Establishment and incorporation of Authority. 

4.  Composition of Authority. 

5.  Term of office and conditions of service of Chairperson and members of Authority. 

6.  Removal of members from office. 

7.  Restriction on future employment of members. 

8.  Administrative powers of Chairperson. 

9.  Meetings of Authority. 

10.  Vacancies,etc., not to invalidate proceedings of Authority. 

11.  Officers and employees of Authority. 

12.  Extent and application. 

CHAPTER III 

EXTENT AND APPLICATION 

CHAPTER IV 

TRANSEFER OF ASSETS, LIABILITIES, ETC., OF INTERIM PENSION FUND REGULATORYAND DEVELOPMENT 
AUTHORITY 

13.  Transfer of assets, liabilities, etc., of Interim Pension Fund Regulatory and Development 

Authority. 

CHAPTER V 

DUTIES, POWERS AND FUNCTIONS OF AUTHORITY 

14.  Duties, powers and functions of Authority. 

15.  Power to issue directions. 

16.  Power of investigation. 

17.  Search and seizure. 

18.  Power of Authority to ensure compliance. 

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SECTIONS 

19.  Management by Administrator. 

CHAPTER VI 

NATIONAL PENSION SYSTEM 

20.  National Pension System. 

21.  Central Recordkeeping Agency. 

22.  Point of presence 

23.  Pension funds. 

24.  Certain restrictions on foreign companies or individual or association of persons. 

25.  Prohibition of investment of funds of subscribers outside India. 

26.  Eligibility norms of the central recordkeeping agency, etc. 

CHAPTER VII 

REGISTRATION OF INTERMEDIARIES 

27.  Registration of central recordkeeping agency, pension fund, point of presence, etc. 

CHAPTER VIII 

PENALTIES AND ADJUDICATION 

28.  Penalty for failure by an intermediary or any other person to comply with provisions of this Act, 

rules, regulations and directions. 

29.  Crediting sums realised by way of penalties to Subscriber Education and Protection Fund. 

30.  Power to adjudicate. 

31.  Attachment of assets and supersession of management of intermediary. 

32.  Offences. 

33.  Power to grant immunity. 

34.  Exemption from tax on wealth, income, profits and gains. 

35.  Cognizance of offences by court. 

36.  Appeal to Securities Appellate Tribunal. 

37.  Civil Court not to have jurisdiction. 

38.  Appeal to Supreme Court. 

CHAPTER IX 

FINANCE, ACCOUNT AND AUDIT 

39.  Grants by Central Government. 

40.  Constitution of Pension Regulatory and Development Fund. 

41.  Constitution of Subscriber Education and Protection Fund. 

42.  Accounts and audit. 

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CHAPTER X 

MISCELLANEOUS 

SECTIONS 

43.  Power of Central Government to issue directions. 

44.  Power of Central Government to supersede Authority. 

45.  Establishment of Pension Advisory Committee. 

46.  Furnishing of returns, etc., to Central Government. 

47.  Members, officers and employees of Authority to be public servants. 

48.  Protection of action taken in good faith. 

49.  Delegation of powers. 

50.  Offences by companies. 

50A. Powers of Authority not to apply to International Financial Services Centre. 

51.  Power to make rules. 

52.  Power to make regulations. 

53.  Rules and regulations to be laid before Parliament. 

54.  Power to remove difficulties. 

55.  Application of other laws not barred. 

56.  Savings. 

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THE PENSION FUND REGULATORY AND DEVELOPMENT 

AUTHORITY ACT, 2013 

ACT NO. 23 OF 2013 

An Act to provide for the establishment of an Authority to promote old age income security by 
establishing, developing and regulating pension funds, to protect the interests of subscribers 
to schemes of pension funds and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— 

[18th September, 2013.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Pension  Fund 

Regulatory and Development Authority Act, 2013. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference 
in any such provision to the commencement of this Act shall be construed as a reference to the coming 
into force of that provision. 

2. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a)  ―Authority‖  means  the  Pension  Fund  Regulatory  and  Development  Authority  established 

under sub-section (1) of section 3; 

(b) ―central recordkeeping agency‖ means an agency registered under section 27 to perform the 
functions  of  recordkeeping,  accounting,  administration  and  customer  service  for  subscribers  to 
schemes; 

(c) ―Chairperson‖ means the Chairperson of the Authority; 

(d) ―document‖ shall include any matter written, expressed or described upon any substance by 
means  of  letters,  figures  or  marks,  or  by  more  than  one  of  those  means,  in  printed  or  in  electronic 
version, which is intended to be used, or which may be used, by the Interim Pension Fund Regulatory 
and Development Authority, or Authority or an intermediary or any other entity connected with the 
National Pension System, for the purpose of recording that matter; 

(e) ―individual pension account‖ means an account of a subscriber, executed by a contract setting 

out the terms and conditions under the National Pension System; 

(f)  ―Interim  Pension  Fund  Regulatory  and  Development  Authority‖  means  the  Interim  Pension 
Fund Regulatory and Development Authority set up by the Central Government through Resolutions 
No. F. No. 5/7/2003-ECB&PR, dated the 10th October, 2003 and F. No. 1(6)/2007-PR, dated the 14th 
November, 2008; 

(g) ―intermediary‖ includes pension fund, central recordkeeping agency, National Pension System 
Trust,  pension  fund  adviser,  retirement  adviser,  point  of  presence  and  such  other  person  or  entity 
connected with collection, management, recordkeeping and distribution of accumulations; 

1. 1st February, 2014,vide Notification No. S.O. 302(E), dated 1st February, 2014, see Gazette of India, Extraordinary, Part II, 

sec. 3(ii). 

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(h) ―member‖ means a member of the Authority and includes its Chairperson; 

(i)  ―National  Pension  System‖  means  the  contributory  pension  system  referred  to  in  section  20 
whereby  contributions  from  a  subscriber  are  collected  and  accumulated  in  an  individual  pension 
account using a system of points of presence, a central  recordkeeping agency and pension funds as 
may be specified by regulations; 

(j)  ―National  Pension  System  Trust‖  means  the  Board  of  Trustees  who  hold  the  assets  of 

subscribers for their benefit; 

(k) ―notification‖ means a notification published in the Official Gazette; 

(l)  ―pension  fund‖  means  an  intermediary  which  has  been  granted  a  certificate  of  registration 
under  sub-section  (3)  of  section  27  by  the  Authority  as  a  pension  fund  for  receiving  contributions, 
accumulating  them  and  making  payments  to  the  subscriber  in  the  manner  as  may  be  specified  by 
regulations; 

(m)  ―Pension  Regulatory  and  Development  Fund‖  means  the  fund  constituted  under  sub-

section(1) of section 40; 

(n) ―point of presence‖ means an intermediary registered with the Authority under sub-section (3) 
of  section  27  as  a  point  of  presence  and  capable  of  electronic  connectivity  with  the  central 
recordkeeping agency for the purposes of receiving and transmitting funds and instructions and pay 
out of funds; 

(o) ―prescribed‖ means prescribed by rules made under this Act; 

(p) ―regulated assets‖ means the assets and properties, both tangible and intangible, owned, leased 

or developed by and other rights belonging to, the central recordkeeping agency; 

(q) ―regulations‖ means the regulations made by the Authority under this Act; 

(r) ―scheme‖ means a scheme of pension fund approved by the Authority under this Act; 

(s) ―Securities Appellate Tribunal‖ means a Securities Appellate Tribunal established under sub-

section (1) of section 15K of the Securities and Exchange Board of India Act, 1992(15 of 1992); 

(t) ―subscriber‖ includes a person who subscribes to a scheme of a pension fund; 

(u) ―Subscriber Education and Protection Fund‖ means the fund constituted under sub-section (1) 

of section 41; 

(v) ―Trustee  Bank"  means a  banking  company  as  defined  in  the  Banking  Regulation  Act, 1949 

(10 of 1949). 

(2) Words and expressions used and not defined in this Act, but defined in— 

(i) the Insurance Act, 1938 (4 of 1938); 

(ii) the Companies Act, 1956(1 of 1956); 

(iii) the Securities Contracts (Regulation) Act, 1956 (42 of 1956); and 

(iv) the Securities and Exchange Board of India Act, 1992 (15 of 1992), 

shall have the meanings respectively assigned to them under those Acts. 

CHAPTER II 

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY 

3.  Establishment  and  incorporation  of  Authority.—(1)With  effect  from  such  date  as  the  Central 
Government  may,  by  notification,  appoint,  there  shall  be  established,  for  the  purposes  of  this  Act,  an 
Authority to be called the Pension Fund Regulatory and Development Authority. 

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(2)The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a 
common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, 
both movable and immovable, and to contract and shall, by the said name, sue or be sued. 

(3)The head office of the Authority shall be in the National Capital Region referred to in clause (f) of 

section 2 of the National Capital Region Planning Board Act, 1985 (2 of 1985). 

(4)The Authority may establish offices at other places in India. 

4.Composition of Authority.—The Authority shall consist of the following Members, namely:— 

(a) a Chairperson; 

(b) three whole-time members; and 

(c) three part-time members, 

to be appointed by the Central Government from amongst persons of ability, integrity and  standing and 
having  knowledge  and  experience  in  economics  or  finance  or  law  with  at  least  one  person  from  each 
discipline. 

5. Term of office and conditions of service of Chairperson and members of Authority.—(1) The 
Chairperson  and  every  whole-time  member  shall  hold  office  for  a  term  of  five  years  from  the  date  on 
which he enters upon his office and shall be eligible for reappointment: 

Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five 

years: 

Provided further that no person shall hold office as a whole-time member after he has attained the age 

of sixty-two years. 

(2) A part-time member shall hold office as such for a term not exceeding five years from the date on 

which he enters upon his office. 

(3)The salary and allowances payable to, and other terms and conditions of service of, the members 

other than part-time members shall be such as may be prescribed. 

(4)The part-time members shall receive such allowances as may be prescribed. 

(5)The  salary,  allowances  and  other  conditions  of  service  of  a  member  shall  not  be  varied  to  his 

disadvantage after his appointment. 

(6) Notwithstanding anything contained in sub-section (1) or sub-section (2), a member may— 

(a) relinquish his office, by giving in writing to the Central Government, a notice of not less than 

thirty days; or 

(b) be removed from his office in accordance with the provisions of section 6. 

6.  Removal  of  members  from  office.—(1)  The  Central  Government  may  remove  from  office  the 

Chairperson or any other member who— 

(a) is, or at any time has been, adjudged as insolvent; or 

(b) has become physically or mentally incapable of acting as a member; or 

(c) has been convicted of an offence which, in the opinion of the Central Government, involves 

moral turpitude; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as 

a member; or 

(e)  has,  in  the  opinion  of  the  Central  Government,  so  abused  his  position  as  to  render  his 

continuance in office detrimental to the public interest. 

(2)  No  such  Chairperson  or  other  member  shall  be  removed  under  clause  (d)  or  clause  (e)  of  sub-

section (1) unless he has been given a reasonable opportunity of being heard in the matter. 

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7.  Restriction  on  future  employment  of  members.—(1)  The  Chairperson  and  the  whole-time 
members shall not, for a period of two years  from the date on which they cease to hold office as such, 
except with the previous approval of the Central Government, accept— 

(a) any employment either under the Central Government or under any State Government; or 

(b) any appointment in any regulated entity in the pension sector. 

(2)  The  Chairperson  and  the  whole-time  members  of  the  Interim  Pension  Fund  Regulatory  and 
Development Authority holding the office as such before the commencement of this Act, shall not, on and 
after  such  commencement,  accept  any  appointment  in  any  regulated  entity  in  the  pension  sector  for  a 
period of two years from the date on which they cease to hold office as such, except with the previous 
approval of the Central Government. 

8.  Administrative  powers  of  Chairperson.—The  Chairperson  shall  have  the  powers  of  general 

superintendence and direction in respect of all administrative matters of the Authority. 

9. Meetings of Authority.—(1) The Authority shall meet at such times and places and shall observe 
such rules of procedure in regard to the transaction of business at its meetings (including quorum at such 
meetings) as may be provided by regulations. 

(2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Authority, any other 
member  chosen  by  the  members  present  from  amongst  themselves  at  the  meeting,  shall  preside  at  the 
meeting. 

(3) All questions which come up before any meeting of the Authority shall be decided by a majority 
of votes by the members present and voting, and in the event of an equality of votes, the Chairperson or in 
his absence, the person presiding shall have a second or casting vote. 

(4) If any member, who is a director of a company and who as such director, has any direct or indirect 
pecuniary interest in any matter coming up for consideration at a meeting of the Authority, he shall, as 
soon  as  possible  after  relevant  circumstances  have  come  to  his  knowledge,  disclose  the  nature  of  his 
interest at such meeting and such disclosure shall be recorded in the proceedings of the Authority, and the 
member shall not take part in any deliberation or decision of the Authority with respect to that matter. 

10.  Vacancies,  etc.,  not  to  invalidate  proceedings  of  Authority.—No  act  or  proceeding  of  the 

Authority shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Authority; or 

(b) any defect in the appointment of a person acting as a member of the Authority; or 

(c) any irregularity in the procedure of the Authority not affecting the merits of the case. 

11. Officers and employees of Authority.—(1)The Authority may appoint such officers and other 

employees as it considers necessary for the efficient discharge of its functions under this Act. 

(2)  The  terms  and  other  conditions  of  service  of  officers  and  other  employees  of  the  Authority 

appointed under sub-section (1) shall be such as may be determined by regulations. 

CHAPTER III 

EXTENT AND APPLICATION 

12. Extent and application.—(1) This Act shall apply to— 

(a) the National Pension System; 

(b) any other pension scheme not regulated by any other enactment. 

(2)  Every  pension  scheme  referred  to  in  clause  (b)  shall  conform  to  the  regulations  made  by  the 

Authority within such time as may be specified in the regulations. 

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(3) Notwithstanding anything contained in sub-section (1), the provisions of this Act shall not apply 

to– 

(a) the schemes or funds under– 

(i) the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46of 1948); 

(ii) the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); 

(iii) the Seamen’s Provident Fund Act, 1966 (4 of 1966); 

(iv) the Assam Tea Plantations Provident Fund and Pension Fund Scheme Act, 1955 (Assam 

Act X of 1955); and 

(v)  the  Jammu  and  Kashmir  Employees’  Provident  Funds  Act,  1961  (Jammu  and  Kashmir 

Act XV of 1961); 

(b) contracts referred to in sub-section (11) of section 2 of the Insurance Act, 1938 (4 of 1938); 

(c) any other pension scheme, which the Central Government may, by notification, exempt from 

the application of this Act; 

(d) persons appointed before the 1st day of January, 2004 to public services in connection with 
the  affairs  of  the  Union,  or  to  All-India  Services  constituted  under  section  2A  of  the  All-India 
Services Act, 1951 (61 of 1951); 

(e) persons appointed to public services in connection with the affairs of any State, or such Union 

territories as may be specified by notification by the Central Government. 

(4) Notwithstanding anything contained in sub-section (3), any State Government or administrator of 

a Union territory may, by notification, extend the National Pension System to its employees. 

(5) Notwithstanding anything contained in clause (c) of sub-section (3), the Central Government may, 
by  notification,  extend  the  application  of  this  Act  to  any  other  pension  scheme  including  any  other 
pension scheme exempted and notified under clause (c) of sub-section (3). 

(6) Any person governed under any of the schemes or funds referred to in sub-section (3) may, at his 

option, also join the National Pension System. 

CHAPTER IV 

TRANSFER OF ASSETS, LIABILITIES, ETC., OF INTERIM PENSION FUND REGULATORY AND 
DEVELOPMENT AUTHORITY 

13.  Transfer  of  assets,  liabilities,  etc.,  of  Interim  Pension  Fund  Regulatory  and  Development 
Authority.—On and  from  the  date  of  establishment  of  the  Pension  Fund  Regulatory  and  Development 
Authority,— 

(a)  all  the  assets  and  liabilities  of  the  Interim  Pension  Fund  Regulatory  and  Development 

Authority shall stand transferred to, and vested in, the Authority. 

Explanation.—The  assets  of  the  Interim  Pension  Fund  Regulatory  and  Development  Authority 
shall  be  deemed  to  include  all  rights  and  powers,  all  properties,  whether  movable  or  immovable, 
including, in particular, cash balances, deposits and all other interests and rights in, or arising out of, 
such properties as may be in the possession of the Interim Pension Fund Regulatory and Development 
Authority and all books of account and other documents relating to the same; and liabilities shall be 
deemed to include all debts, liabilities and obligations of whatever kind; 

(b) without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred, 
all contracts entered into and all matters and things engaged to be  done by, with or for the Interim 
Pension  Fund  Regulatory  and  Development  Authority  immediately  before  that  day,  for  or  in 
connection with the purpose of the said Regulatory Authority, shall be deemed to have been incurred, 
entered into or engaged to be done by, with or for, the Authority; 

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(c) all sums of money due to the Interim Pension Fund Regulatory and  Development Authority 

immediately before that day shall be deemed to be due to the Authority; and  

(d)  all  suits  and  other  legal  proceedings  instituted  or  which  could  have  been  instituted  by  or 
against the Interim Pension Fund Regulatory and Development Authority immediately before that day 
may be continued or may be instituted by or against the Authority. 

CHAPTER V 

DUTIES, POWERS AND FUNCTIONS OF AUTHORITY 

14.Duties, powers and functions of Authority.—(1) Subject to the provisions of this Act and any 
other law for the time being in force, the Authority shall have the duty, to regulate, promote and ensure 
orderly  growth  of  the  National  Pension  System  and  pension  schemes  to  which  this  Act  applies  and  to 
protect the interests of subscribers of such System and schemes. 

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and 

functions of the Authority shall include— 

(a) regulating the National Pension System and the pension schemes to which this Act applies; 

(b)  approving  the  schemes,  the  terms  and  conditions  thereof  and  laying  down  norms  for  the 
management of the corpus of the pension funds, including investment guidelines under such schemes; 

(c) registering and regulating intermediaries; 

(d)  issuing  to  an  intermediary,  on  application,  a  certificate  of  registration  and  renewing, 

modifying, withdrawing, suspending or cancelling such registration; 

(e) protecting the interests of subscribers by— 

(i) ensuring safety of the contribution of subscribers to various schemes of pension funds to 

which this Act applies; 

(ii) ensuring that the intermediation and other operational costs under the National Pension 

System are economical and reasonable; 

(f) establishing mechanism for redressal of grievances of subscribers to be determined by 

regulations; 

(g) promoting professional or organisations connected with the pension system; 

(h) adjudication of disputes between intermediaries and between intermediaries and subscribers; 

(i)  collecting  data  and  requiring  the  intermediaries  to  collect  such  data  and  undertaking  and 

commissioning studies, research and projects; 

(j)  undertaking  steps  for  educating  subscribers  and  the  general  public  on  issues  relating  to 

pension, retirement savings and related issues and training of intermediaries; 

(k)  standardising  dissemination  of  information  about  performance  of  pension  funds  and 

performance benchmarks; 

(l) regulating the regulated assets; 

(m) levying fees or other charges for carrying out the purposes of this Act; 

(n) specifying by regulations the form and manner in which books of account shall be maintained 

and statement of accounts shall be rendered by intermediaries; 

(o)  calling  for  information  from,  undertaking  inspection  of,  conducting  inquiries  and 
investigations  including  audit  of,  intermediaries  and  other  entities  or  organisations  connected  with 
pension funds; 

(p) exercising such other powers and functions as may be prescribed. 

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(3) Notwithstanding anything contained in any other law for the time being in force, while exercising 
the powers under clause (o) of sub-section (2), the Authority shall have the same powers as are vested in a 
civil  court  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908)  while  trying  a  suit,  in  respect  of  the 
following matters, namely:— 

(i) the discovery and production of books of account and other documents, at such place and 

at such time as may be specified by the Authority; 

(ii) summoning and enforcing the attendance of persons and examining them on oath; 

(iii)  inspection  of  any  book,  register  and  other  document  of  any  person  or  intermediary 

referred to in section 26, at any place; 

(iv) issuing commissions for the examination of witnesses or documents; 

(v) any other matter which may be prescribed. 

(4) Without prejudice to the provisions contained in sub-sections (1), (2) and (3) and section 16, the 
Authority may, by order, for reasons to be recorded in writing, in the interest of subscribers, take any of 
the following measures, pending investigation or inquiry, namely:— 

(i) restrain persons from participating in any scheme; 

(ii) restrain any office bearer of an intermediary from acting as such; 

(iii)  impound  and  retain  the  proceeds  under  the  scheme  in  respect  of  any  activity  which  is 

under investigation; 

(iv)  attach,  after  passing  an  order,  on  an  application  made  for  approval,  by  the  Judicial 
Magistrate of first class having jurisdiction, for a period not exceeding one month, one or more 
bank account or accounts of any intermediary or any person  associated with the scheme in any 
manner involved in violation of any of the provisions of this Act or the rules or the regulations 
made thereunder: 

Provided that only the bank account or accounts or any transaction entered therein, relating to 
the proceeds actually involved in the violation of any of the provisions of this Act or the rules or 
the regulations made thereunder shall be allowed to be attached; 

(v) direct  any  intermediary  or  any  person  associated with the scheme  in  any  manner  not  to 

dispose of or alienate an asset forming part of any activity which is under investigation: 

Provided  that  the  Authority  shall,  either  before  or  after,  passing  such  orders,  under  this 

section, give to such intermediaries or persons concerned an opportunity of being heard. 

15. Power to issue directions.—Save as otherwise provided in section 14, if after making, or causing 

to be made, an inquiry, the Authority is satisfied that it is necessary— 

(i)  in  the  interests  of  subscribers  or  orderly  development  of  National  Pension  System  or  a 

pension scheme to which this Act applies; or 

(ii) to prevent the affairs of any intermediary or other persons or entities referred to in section 

27 being conducted in a manner detrimental to the interests of subscribers; or 

(iii) to secure the proper management of any such intermediary or person or entity, 

it may issue such directions to such intermediaries or entities or to any person or class of persons referred 
to in section 27, or associated with the pension fund, as it may deem fit: 

Provided that the Authority shall, either before or after passing such orders, give  an opportunity of 

being heard to such intermediaries, entities or persons concerned. 

16. Power of investigation.—(1) Where the Authority has a reasonable ground to believe that— 

(a) the activities of the pension fund are being conducted in a manner detrimental to the interest 

of the subscriber; or 

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(b) any intermediary or any person associated with the schemes of the pension fund has violated 
any  of  the  provisions  of  this  Act  or  the  rules  or  the  regulations  made  or  directions  issued  by  the 
Authority thereunder, 

it  may,  at  any  time,  by  order  in  writing,  direct  any  person  (hereafter  in  this  section  referred  to  as  the 
Investigating  Authority) specified in the order to investigate the affairs of such intermediary or persons 
associated with the pension fund and to report thereon to the Authority. 

(2) Without prejudice to the provisions contained in sections 235 to 241 of the Companies Act, 1956 
(1 of 1956), it shall be the duty of every manager, managing director, officer and other employee of the 
company, in case of a company and every intermediary or persons or entity referred to  in section 27 or 
every person associated with the pension fund to preserve and to produce to the Investigating Authority or 
any person authorised by him in this behalf, all the books, registers, other documents and record of, or 
relating to, the company or, as the case may be, of or relating to, the intermediary or such person, which 
are in their custody or power. 

(3) The Investigating Authority may require any intermediary or any person or entity associated with 
the  pension  fund  in  any  manner  to  furnish  such  information  to,  or  produce  such  books,  or  other 
documents,  or  record  before  him  or  any  person  authorised  by  him  in  this  behalf  as  he  may  consider 
necessary  if  the  furnishing  of  such  information  or  the  production  of  such  books,  or  register,  or  other 
documents, or record is relevant or necessary for the purposes of its investigation. 

(4) The  Investigating  Authority  may  keep  in  its  custody  any  books,  registers,  other  documents  and 
record  produced  under  sub-section  (2)  or  sub-section  (3)  for  six  months  and  thereafter  shall  return  the 
same to any intermediary or any person associated or entity with the pension fund by whom or on whose 
behalf the books, registers, other documents and record are produced: 

Provided that the Investigating Authority may call for any book, register, other documents and record 

if they are required again: 

Provided further that if the person on whose behalf the books, registers, other documents and record 
are produced requires certified copies of the books, registers, other documents or record produced before 
the Investigating Authority, it shall give certified copies of such books, registers, other documents or, as 
the  case  may  be,  record  to  such  person  or  on  whose  behalf  the  books,  registers,  other  documents  and 
record were produced. 

(5) Any person, directed to  make an investigation under sub-section (1), may  examine  on oath any 
intermediary or any person associated with the pension fund in any manner, in relation to the affairs of his 
business and may administer an oath accordingly and for that purpose may require any of those persons to 
appear before him personally. 

(6) Notes of any examination under sub-section (5) shall be taken down in writing and shall be read 

over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him. 

(7) If any person fails without reasonable cause or refuses— 

(a) to produce to an Investigating Authority or any person authorised by him in this behalf any 
book, register, other document or record which it is his duty under sub-section(2) or sub-section (3) to 
furnish; or 

(b) to furnish any information which it is his duty under sub-section (3) to furnish; or 

(c)  to  appear  before  the  Investigating  Authority  personally  when  required  to  do  so  under  sub-
section (5) or to answer any question which is put to him by the Investigating Authority in pursuance 
of that sub-section; or 

(d) to sign the notes of any examination referred to in sub-section (6), 

he shall be punishable with imprisonment for a term which may extend to one year, or with fine, which 
may extend to twenty-five crore rupees, or with both, and also with a further fine which may extend to ten 
lakh rupees for every day after the first day during which the failure or refusal continues. 

11 

 
17. Search and seizure.—(1) Where the Authority, in consequence of information in its possession, 

has reason to believe that– 

(a) any person who has been required under sub-section (3) of section 16 to produce, or cause to 
be produced, any books, accounts or other documents in his custody or power has omitted or failed to 
produce, or cause to be produced, such books, accounts or other documents; or 

(b)  any  person  to  whom  a  requisition  to  produce  any  books,  accounts  or  other  documents  as 
aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any 
books, accounts or other documents which will be useful for, or relevant to, an investigation under 
sub-section (1) of section 16; or 

(c) a contravention of any provision of this Act has been committed or is likely to be committed 

by an intermediary; or 

(d) any claim which is due to be settled by the intermediary, has been or is likely to be rejected or 

settled at a figure higher than a reasonable amount; or 

(e) any claim which is due to be settled by an intermediary, has been or is likely to be rejected or 

settled at a figure lower than a reasonable amount; or 

(f)  any  illegal  fees  and  charges  have  been  transacted  or  are  likely  to  be  transacted  by  an 

intermediary; or 

(g) any books, accounts, papers, receipts, vouchers, survey reports or other documents, belonging 

to an intermediary are likely to be tampered with, falsified or manufactured, 

it may authorise any officer of the Authority, not below the rank equivalent to that of a Gazetted Officer 
of the Government (hereafter referred to as the authorised officer), to– 

(i)  enter  and  search  any  building  or  place  where  he  has  reason  to  suspect  that  such  books, 
accounts or other documents, or any books or papers relating to any claim, rebate or commission or 
any receipts, vouchers, reports or other documents are kept; 

(ii) break open the lock of any box, locker, safe, almirah or other receptacle for exercising the 

powers conferred by clause (i) where the keys thereof are not available; 

(iii) seize all or any such books, accounts or other documents, found as a result of such search; 

(iv) place marks of identification on such books, accounts or other documents or make or cause 

to be made extracts or copies therefrom. 

(2) The authorised officer may requisition the services of any police officer or of  any officer of the 
Central Government, or of both, to assist him for all or any of the  purposes specified in sub-section (1) 
and it shall be the duty of every such police officer or officer to comply with such requisition. 

(3) The authorised officer may, where it is not practicable to seize any such book, account or other 
document, specified in sub-section (1), serve an order on the person who is  in immediate possession or 
control  thereof  that  he  shall  not  remove,  part  with  or  otherwise  deal  with  it  except  with  the  previous 
permission  of  such  officer  and  such  officer  may  take  such  steps  as  may  be  necessary  for  ensuring 
compliance with this sub-section. 

(4)  The  authorised  officer  may,  during  the  course  of  the  search  or  seizure,  examine  on  oath  any 
person who is found to be in possession or control of  any books, accounts or other documents, and any 
statement  made  by  such  person  during  such  examination  may  thereafter  be  used  in  evidence  in  any 
proceeding under this Act. 

(5)  The  books,  accounts,  papers,  receipts,  vouchers,  reports,  or  other  documents  seized  under  sub-
section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty 
days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing 
and the approval of the Authority for such retention is obtained: 

12 

 
 
Provided that the Authority shall not authorise the retention of the books, accounts, papers, receipts, 
vouchers, reports, or other documents for a period exceeding thirty days  after all the proceedings under 
this  Act,  for  which  the  books,  accounts,  papers,  receipts,  vouchers,  reports,  or  other  documents  are 
relevant, are completed. 

(6) The person from whose custody the books, accounts, papers, receipts, vouchers, reports, or other 
documents are seized under sub-section (1) may  make copies thereof, or  take extracts therefrom, in the 
presence of the authorised officer or any other person empowered by him in this behalf at such place and 
time as the authorised officer may appoint in this behalf. 

(7)  If  a  person  legally  entitled  to  the  books,  accounts,  papers,  receipts,  vouchers,  reports  or  other 
documents  seized  under  sub-section  (1)  objects  for  any  reason  to  the  approval  given  by  the  Authority 
under sub-section (5), he may make an application to the Central Government stating therein the reason 
for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, report 
or other documents. 

(8) On receipt of the application under sub-section (7), the Central Government may, after giving the 

applicant an opportunity of being heard, pass such order as it thinks fit. 

(9)  The  provisions  of  the  Code  of  Criminal  Procedure,  1973(2  of  1974)  relating  to  searches  and 

seizures shall apply, so far as may be, to every search and seizure made under sub-section (1). 

(10)  The  Central  Government  may,  by  notification,  make  rules  in  relation  to  any  search  or  seizure 
under this section and in particular, and without prejudice to the generality of the foregoing power, such 
rules may provide for the procedure to be followed by the authorised officer,– 

(i) for obtaining ingress into such building or place to be searched where free ingress thereto 

is not available; 

(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers,  reports, or 

other documents seized under this section. 

18.Power of Authority to ensure compliance.—If the Authority finds, after causing an inquiry to be 
made,  that  any  person  has  violated,  or  is  likely  to  violate,  any  provisions  of  this  Act,  or  any  rule  or 
regulation  made  thereunder,  the  Authority  may  pass  an  order requiring  such  person to cease  and  desist 
from committing or causing such violation. 

19. Management by Administrator.—(1) If at any time the Authority has reason to believe that the 
central recordkeeping agency or pension fund is acting in a manner likely to be prejudicial to the interest 
of subscribers, it may, after giving the central recordkeeping agency or pension fund, as the case may be, 
an opportunity of being heard, make a report thereon to the Central Government. 

(2)  If  the  Central  Government,  after  considering  the  report  made  under  sub-section  (1)  is  of  the 
opinion, that it is necessary or proper to do so, it may appoint an Administrator to manage the affairs of 
the central recordkeeping agency or pension fund, as the case may be, under the direction and control of 
the Authority, in such manner as may be specified by notification. 

CHAPTER VI 

NATIONAL PENSION SYSTEM 

20. National Pension System.—(1) The contributory pension system notified by the Government of 
India  in  the  Ministry  of  Finance  vide  notification  number  F.  No.  5/7/2003-ECB&PR,  dated  the 
22ndDecember, 2003, shall be deemed to be the National Pension System with effect from the 1stday of 
January, 2004, and such National Pension System may be amended from time to time by regulations. 

(2) Notwithstanding anything contained in the said notification, the National Pension System shall, on 

the commencement of this Act, have the following basic features, namely:– 

(a) every subscriber shall have an individual pension account under the National Pension System; 

13 

 
 
(b) withdrawals, not exceeding twenty-five per cent. of the contribution made by the subscriber, 
may  be  permitted  from  the  individual  pension  account  subject  to  the  conditions,  such  as  purpose, 
frequency and limits, as may be specified by the regulations; 

(c) the functions of recordkeeping, accounting and switching of options by the subscriber shall be 

effected by the central recordkeeping agency; 

(d) there shall be a choice of multiple pension funds and multiple schemes: 

Provided that— 

(a) the  subscriber shall  have  an  option  of investing  up  to  hundred  per  cent.  of  his funds in 

Government Securities; and 

(b) the subscriber, seeking minimum assured returns, shall have an option to invest his funds 

in such schemes providing minimum assured returns as may be notified by the Authority; 

(e) there shall be portability of individual pension accounts in case of change of employment; 

(f)  collection  and  transmission  of  contributions  and  instructions  shall  be  through  points  of 

presence to the central recordkeeping agency; 

(g) there shall not be any implicit or explicit assurance of benefits except market based guarantee 

mechanism to be purchased by the subscriber; 

(h) a subscriber shall not exit from the National  Pension System except as may be  specified by 

the regulations; and 

(i) at exit, the subscriber shall purchase an annuity from a life insurance company in accordance 

with the regulations. 

(3)  In  addition  to  the  individual  pension  account  mentioned  in  clause  (a)  of  sub-section  (2),  a 
subscriber may also, at his option, have an additional account under the National Pension System having 
the features mentioned in clauses (c) to (g) of sub-section (2) and also having the additional feature that 
the subscriber shall be free to withdraw part or all of his money at any time from the additional account. 

21.  Central  Recordkeeping  Agency.—(1)  The  Authority  shall,  by  granting  a  certificate  of 

registration under sub-section (3) of section 27, appoint a central recordkeeping agency: 

Provided  that  the  Authority  may,  in  public  interest,  appoint  more  than  one  central  recordkeeping 

agency. 

(2) The central recordkeeping agency shall be responsible for receiving instructions from subscribers 
through  the  points  of  presence,  transmitting  such  instructions  to  pension  funds,  effecting  switching 
instructions  received  from  subscribers  and  discharging  such  other  duties  and  functions,  as  may  be 
assigned to it under the certificate of registration or as may be determined by regulations. 

(3)  All  the  assets  and  properties  owned,  leased  or  developed  by  the  central  recordkeeping  agency, 
shall constitute regulated assets and upon expiry of certificate of registration or earlier revocation thereof, 
the Authority shall be entitled to appropriate and take over the regulated assets, either by itself or through 
an administrator or a person nominated by it in this behalf: 

Provided that the central recordkeeping agency shall be entitled to be compensated the fair value, to 

be ascertained by the Authority, of such regulated assets as may be determined by regulations: 

Provided  further  that  where  the  earlier  revocation  of  the  certificate  of  registration  is  based  on 
violation  of  the  conditions  in  the  certificate  of  registration  or  the  provisions  of  this  Act  or  regulations, 
unless otherwise determined by the Authority, the central recordkeeping agency shall not be entitled to 
claim any compensation in respect of such regulated assets. 

14 

 
 
 
22. Point of presence.—(1) The Authority may, by granting a certificate of  registration under sub-
section  (3)  of  section  27,  permit  one  or  more  persons  to  act  as  a  point  of  presence  for  the  purpose  of 
receiving  contributions  and  instructions,  transmitting  them  to  the  Trustee  Bank  or  the  central 
recordkeeping agency, as the case may be, and paying out benefits to subscribers in accordance with the 
regulations made by the Authority from time to time in this regard. 

(2) A point of presence shall functions in accordance with the terms of its certificate of registration 

and the regulations made under this Act. 

23.Pension funds.—(1) The Authority may, by granting a certificate of registration under sub-section 
(3)  of  section  27,  permit  one  or  more  persons  to  act  as  a  pension  fund  for  the  purpose  of  receiving 
contributions,  accumulating  them  and  making  payments  to  the  subscriber  in  such  manner  as  may  be 
specified by regulations. 

(2) The number of pension funds shall be determined by regulations and the Authority may, in public 

interest, vary the number of pension funds: 

Provided that at least one of the pension funds shall be a Government company. 

Explanation.—For  the  purposes  of  this  sub-section,  the  expression  ―Government  company‖  shall 

have the meaning assigned to it in section 617 of the Companies Act, 1956 (1 of 1956). 

(3) The pension fund shall function in accordance with the terms of its certificate of registration and 

the regulations made under this Act. 

(4) The pension fund shall manage the schemes in accordance with the regulations. 

24.  Certain  restrictions  on  foreign  companies  or  individual  or  association  of  persons.—The 
aggregate  holding  of  equity  shares  by  a  foreign  company  either  by  itself  or  through  its  subsidiary 
companies or its nominees or by an individual or by an association of persons whether registered or not 
under any law of a country outside India taken in aggregate in the pension fund shall not exceed twenty-
six  per  cent.  of  the  paid-up  capital  of  such  fund  or  such  percentage  as  may  be  approved  for  an  Indian 
insurance company under the provisions the Insurance Act, 1938 (4 of 1938) whichever is higher. 

Explanation.—For  the  purposes  of  this  section,  the  expression  ―foreign  company‖  shall  have  the 

meaning assigned to it in clause (23A) of section 2 of the Income-tax Act, 1961 (43 of 1961). 

25.  Prohibition  of  investment  of  funds  of  subscribers  outside  India.—No  pension  fund  shall, 

directly or indirectly invest outside India, the funds of subscribers. 

26.  Eligibility  norms  of  the  central  recordkeeping  agency,  etc.—The  central  recordkeeping 
agency, points of presence and pension funds, shall satisfy the eligibility norms as may be specified by 
the regulations, including minimum capital requirement, past track-record including the ability to provide 
guaranteed returns, costs and fees, geographical reach, customer base, information technology capability, 
human resources and such other matters. 

CHAPTER VII 

REGISTRATION OF INTERMEDIARIES 

27. Registration of central recordkeeping agency, pension fund, point of presence, etc.—(1) No 
intermediary, including a pension fund or a point of presence to the extent regulated under this Act, shall 
commence any activity relating to a pension fund except under and in accordance with the conditions of a 
certificate of registration granted by the Authority in accordance with the provisions of this Act and the 
regulations: 

15 

 
 
Provided  that  any  intermediary,  including  any  point  of  presence,  who  had  been  associated  with  a 
pension scheme and appointed to act as such by the Interim Pension Fund Regulatory and Development 
Authority immediately before the establishment of the Authority under this Act for which no registration 
certificate  was  necessary  prior  to  such  establishment,  and  may  continue  to  do  so  for  a  period  of  six 
months  from  such  establishment  or,  if  he  has  made  an  application  for  such  registration  within  the  said 
period of six months till the disposal of such application. 

(2) Every application for grant of a certificate of registration under this Act shall be in such form and 

manner and shall be accompanied by such fees as may be determined by regulations. 

(3) The Authority may, after considering the application and subject to such terms and conditions as it 
may  specify,  grant  a  certificate  of  registration  as  a  central  recordkeeping  agency,  point  of  presence, 
pension fund or such other intermediary, as the case may be. 

(4)  The  Authority  may,  by  order,  suspend  or  cancel  a  certificate  of  registration  granted  under  sub-

section (3) in such manner as may be determined by regulations:  

Provided  that  no  order  under  this  sub-section  shall  be  made  unless  the  person  concerned  has  been 

given a reasonable opportunity of being heard. 

CHAPTER VIII 

PENALTIES AND ADJUDICATION 

28. Penalty for failure by an intermediary or any other person to comply with provisions or this 
Act, rules, regulations and directions.—(1) Any person, who is required under this Act or any rules or 
regulations made thereunder,— 

(a) to obtain a certificate of registration from the Authority for carrying on any activity under this 
Act, carries on such activities without obtaining such certificate of registration, he shall be liable to a 
penalty  of  one  lakh  rupees  for  each  day  during  which  the  failure  continues  or  one  crore  rupees, 
whichever is less; 

(b) to comply with the terms and conditions of a certificate of registration fails to do so, he shall 
be liable to a penalty of one lakh rupees for each day during which the failure continues or one crore 
rupees, whichever is less; 

(c) to furnish any information, document, books, returns or report to the Authority, fails to furnish 
the same within the time specified by the Authority, he shall be liable to a penalty which may extend 
to one crore rupees or five times the amount of profits made or losses avoided, whichever is higher; 

(d)  to  maintain  books  of  account  or  records,  fails  to  maintain  the  same,  he  shall  be  liable  to  a 
penalty of one lakh rupees for each day during which the failure continues or five times the amount of 
profits made or losses avoided, whichever is higher. 
(2) If any person, who is required under this Act or any rules or regulations made thereunder, to enter 
into an agreement with his client, fails to enter into such agreement, he shall be liable to a penalty of one 
lakh rupees for each day during which the failure continues or five times the amount of profits made or 
losses avoided, whichever is higher. 

(3) If any intermediary registered with the Authority, after having been called upon by the Authority, 
in  writing,  to  redress  the  grievances  of  subscribers,  fails  to  redress  such  grievances  within  the  time 
stipulated by the Authority, he shall be liable to a penalty of not more than one crore rupees or five times 
the amount of profits made or losses avoided, whichever is higher. 

(4) If any person, who is registered under this Act as an intermediary, fails to segregate moneys of the 
client or clients or uses the moneys of a client or clients for self or for any other client, he shall be liable 
to a penalty not exceeding one crore rupees or five times the amount of profits made or losses avoided, 
whichever is higher. 

(5) Whoever fails to comply with any provision of this Act, the rules or the regulations made or the 
directions issued by the Authority under the provisions of this Act for which no separate penalty has been 

16 

 
provided, he shall be liable to a penalty which may extend to one crore rupees or five times the amount of 
profits made or losses avoided, whichever is higher. 

29.  Crediting  sums  realised  by  way  of  penalties  to  Subscriber  Education  and  Protection 
Fund.—All  sums  realised  by  way  of  penalties  under  this  Act  shall  be  credited  to  the  Subscriber 
Education and Protection Fund established under sub-section (1) of section 41. 

30. Power to adjudicate.—(1) For the purposes of adjudging under section 28, the Authority shall 
appoint any  of its  officers not  below the  rank  specified  by  regulations to be an  adjudicating  officer  for 
holding an inquiry as may be determined by regulations, after giving the person concerned a reasonable 
opportunity of being heard for the purpose of imposing any penalty. 

(2) While holding an inquiry, the adjudicating officer shall have the power to summon  and enforce 
the attendance of any person acquainted with the facts and circumstances of the case to give evidence or 
to produce any document which, in the opinion of the adjudicating officer, may be useful for or relevant 
to  the  subject  matter  of the  inquiry  and  if,  on  such  inquiry,  he is  satisfied that the  person has failed to 
comply with the provisions of section 28, he may recommend such penalty as he thinks fit in accordance 
with the provisions of that section, to the member in charge of investigation and surveillance. 

(3) The penalty shall be imposed by a member other than the member in charge of investigation and 

surveillance: 

Provided that while adjudging the quantum of penalty under section 28, the member shall have due 

regard to the following factors, namely:— 

(a) amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result 

of the default; 

(b) amount of loss caused to a subscriber or group of subscribers; and 

(c) the repetitive nature of the default. 

31.  Attachment  of  assets  and  supersession  of  management  of  intermediary.—(1)  Any  person 
aggrieved  may  apply  to  the  Authority  for  an  interim  measure  of  protection  in  respect  of  any  of  the 
following matters, namely:– 

(a) the retention, preservation, interim custody or sale of any asset or property which is regulated 

by the provisions of this Act; 

(b)  securing  any  pension  fund,  moneys  and  other  assets  and  properties  owned  by  or  under  the 

control of the pension fund; 

(c) interim injunction or appointment of an administrator; and 

(d) such other interim measures as may appear to the Authority to be just and necessary,  

and the Authority shall have power to make such orders including an order for attachment of assets of the 
pension fund as it deems fit in this regard. 

(2) Where, on a complaint received by the Authority or  suo motu, the Authority, after conducting an 
inquiry, comes to a conclusion that the governing board or board of directors, by whatever name called, or 
the  persons  in  control  of  any  intermediary  to  the  extent  regulated  under  this  Act  are  indulging  in  any 
activity  which  is  in  contravention  of  the  provisions  of  this  Act  or  regulations,  it  may  supersede  the 
governing  board  or  board  of  directors  or  management  of  the  intermediary  in  accordance  with  the 
provisions of the regulations. 

(3) In case the governing board or board of directors or management of an intermediary is superseded 
under  sub-section  (2),  the  Authority  may  appoint  an  Administrator  to  manage  the  affairs  of  the 
intermediary in accordance with the provisions contained in the regulations. 

32. Offences.—(1) Without prejudice to any award of penalty by the member under this Act, if any 
person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of 

17 

 
any rules or regulations made thereunder, he shall be punishable with imprisonment for a term which may 
extend to ten years, or with fine, which may extend to twenty-five crore rupees or with both. 

(2) If any person fails to pay the penalty imposed by the member or fails to comply with any of the 
directions  or  orders issued  by  the  member,  he shall  be  punishable  with imprisonment  for  a  term  which 
shall not be less than one month but which may extend to ten years, or  with fine, which may extend to 
twenty-five crore rupees, or with both. 

33. Power to grant immunity.—(1) The Central Government  may, on the recommendation by the 
Authority, if satisfied, that any person, who is alleged to have violated any of the provisions of this Act or 
the  rules  or  the  regulations  made  thereunder,  has  made  a  full  and  true  disclosure  in  respect  of  alleged 
violation, grant to such person, subject to such conditions as it may think fit to impose, immunity from 
prosecution for any offence under this Act, or the rules or the regulations made thereunder and also from 
the imposition of any penalty under this Act with respect to the alleged violation: 

Provided  that  no  such  immunity  shall  be  granted  by  the  Central  Government  in  cases  where  the 
proceedings  for  the  prosecution  for  any  such  offence  have  been  instituted  before  the  date  of  receipt  of 
application for grant of such immunity: 

Provided further that the recommendation of the Authority under this sub-section shall not be binding 

upon the Central Government. 

(2)  An  immunity  granted to  a  person  under  sub-section  (1)  may,  at  any  time,  be  withdrawn  by  the 
Central Government, if it is satisfied that such person had, in the course of the proceedings, not complied 
with the condition on which the immunity was granted or had given false evidence, and thereupon such 
person  may  be  tried  for  the  offence  with  respect  to  which  the  immunity  was  granted  or  for  any  other 
offence  of  which  he  appears  to  have  been  guilty  in  connection  with  the  contravention  and  shall  also 
become  liable  to  the  imposition  of  any  penalty  under  this  Act  to  which  such  person  would  have  been 
liable, had no such immunity been granted. 

34.  Exemption  from  tax  on  wealth,  income,  profits  and  gains.—Notwithstanding  anything 

contained in– 

(i) the Wealth-tax Act, 1957 (27 of 1957); 

(ii) the Income-tax Act, 1961(43 of 1961) ; or 

(iii) any other enactment for the time being in force relating to tax on wealth, income, profits or 

gains,  

the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of its wealth, 
income, profits or gains derived. 

35. Cognizance of offences by court.—(1) No court shall take cognizance of any offence punishable 

under this Act or any rules or regulations made thereunder, save on a complaint made by the Authority. 

(2) No court inferior to that of a Court of Session shall try any offence punishable under this Act. 

36.Appeal to Securities Appellate Tribunal.—(1) Any person aggrieved by an order made by the 
Authority  or  by  an  adjudicating  officer  under  this  Act  may  prefer  an  appeal  before  the  Securities 
Appellate Tribunal which shall have jurisdiction over the matter. 

(2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date 
of receipt of the order appealed against and it shall be in such form and manner and shall be accompanied 
by such fee as may be prescribed: 

Provided that the Securities Appellate Tribunal may  entertain an appeal after the expiry  of the said 

period, if it is satisfied that there was sufficient cause for not preferring the appeal within that period. 

(3) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving 
the  parties  to  the  appeal,  an  opportunity  of  being  heard,  pass  such  orders  thereon  as  it  thinks  fit, 
confirming, modifying or setting aside the order appealed against. 

18 

 
 
(4) The Securities Appellate Tribunal shall send a copy of every order made by it to the Authority, the 

parties to the appeal and to the adjudicating officers concerned. 

(5) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with 
by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within 
six months from the date on which the appeal is presented to it. 

(6)  Without  prejudice  to  the  provisions  of  sections  15T  and  15U  of  the  Securities  and  Exchange 
Board of India Act, 1992 (15 of 1992), the Securities Appellate Tribunal shall deal with an appeal under 
this section in accordance with such procedure as may be prescribed. 

37. Civil Court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit 
or  proceeding  in  respect  of  any  matter  which  an  adjudicating  officer  appointed  under  this  Act  or  a 
Securities Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be 
granted by any court or other authority in respect of any action taken or to be taken in pursuance of any 
power conferred by or under this Act. 

38.Appeal  to  Supreme  Court.—  Any  person  aggrieved  by  any  decision  or  order  of the  Securities 
Appellate Tribunal  under this  Act  may  file  an appeal  to  the  Supreme  Court  within  sixty  days  from  the 
date  of  communication  of  the  decision  or  order  of  the  Securities  Appellate  Tribunal  to  him  on  any 
question of law arising out of such order: 

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient 
cause  from  filing  the  appeal  within  the  said  period,  allow  it  to  be  filed  within  a  further  period  not 
exceeding sixty days. 

CHAPTER IX 

FINANCE, ACCOUNT AND ADUIT 

39. Grants by Central Government.—The Central Government may, after due appropriation made 
by  Parliament  by  law  in  this  behalf,  make  to  the  Authority  grants  of  such  sums  of  money  as  that 
Government may think fit for being utilised for the purposes of this Act. 

40. Constitution of Pension Regulatory and Development Fund.—(1) There shall be constituted a 

fund to be called the Pension Regulatory and Development Fund and there shall be credited thereto— 

(a) all Government grants, fees and charges received by the Authority; 

(b)  all  sums  received  by  the  Authority  from  such  other  source  as  may  be  decided  upon  by  the 

Central Government. 

(2) The Fund shall be applied for meeting— 

(a)  the  salaries,  allowances  and  other  remuneration  of  the  Chairperson  and  other  members  and 

officers and other employees of the Authority; 

(b) other expenses of the Authority in connection with the discharge of its functions and for the 

purposes of this Act. 

41.Constitution of Subscriber Education and Protection Fund.—(1) The Authority shall establish 

a fund to be called the Subscriber Education and Protection Fund. 

(2) There shall be credited to the Subscriber Education and Protection Fund the following amounts, 

namely:— 

(a)  grants  and donations  given  to  the  Subscriber  Education and  Protection  Fund  by  the  Central 
Government,  State  Governments,  companies  or  any  other  institutions  for  the  purposes  of  the 
Subscriber Education and Protection Fund; 

(b)  the  interest  or  other  income  received  out  of  the  investments  made  from  the  Subscriber 

Education and Protection Fund; 

(c) the sums realised by way of penalties by the Authority under section 28. 

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(3) The Subscriber Education and Protection Fund shall be administered and utilised by the Authority 

for protection of the interests of subscribers in accordance with regulations made for the purpose. 

42.  Accounts  and  audit.—(1)  The  Authority  shall  maintain  proper  accounts  and  other  relevant 
records and  prepare an annual statement of accounts in such form as  may be prescribed by the Central 
Government in consultation with the Comptroller and Auditor-General of India. 

(2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at 
such  intervals  as  may  be  specified  by  him  and  any  expenditure  incurred  in  connection  with  such  audit 
shall be payable by the Authority to the Comptroller and Auditor-General. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  other  person  appointed  by  him  in 
connection  with  the  audit  of  the  accounts  of  the  Authority  shall  have  the  same  rights,  privileges  and 
authority  in  connection  with  such  audit  as  the  Comptroller  and  Auditor-General  generally  has  in 
connection with the audit of the Government accounts and, in particular, shall have the right to demand 
the production of books, accounts, connected   vouchers and other documents and papers and to inspect 
any of the offices of the Authority. 

(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any 
other person appointed by him in this behalf, together with the audit-report thereon, shall be forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

CHAPTER X 

MISCELLANEOUS 

43.Power  of  Central  Government  to  issue  directions.—(1)  Without  prejudice  to  the  foregoing 
provisions of this Act, the Authority shall,  in exercise of its powers or the performance of its functions 
under this Act, be bound by such directions on questions of policy, other than those relating to technical 
and administrative matters, as the Central Government may give, in writing to it, from time to time: 

Provided that the Authority shall, as far as practicable, be given an opportunity to express its views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government, whether a question is one of policy or not, shall be final. 

44.  Power  of  Central  Government  to  supersede  Authority.—(1)  If  at  any  time  the  Central 

Government is of the opinion that— 

(a) on account of circumstances beyond the control of the Authority, it is unable to discharge the 

functions or perform the duties imposed on it by or under the provisions of this Act; or 

(b) the Authority has persistently defaulted in complying with any direction issued by the Central 
Government that the Central Government is entitled to issue under this Act or in the discharge of the 
functions or performance of the duties imposed on it by or under the provisions of this Act and as a 
result of such default the financial position of the Authority or the administration of the Authority has 
deteriorated; or 

(c) circumstances exist which render it necessary in the public interest so to do,  

the  Central  Government  may,  by  notification  and  for  reasons  to  be  specified  therein,  supersede  the 
Authority for such period, not exceeding six months, as may be specified in the notification: 

Provided  that  before  issuing  any  such  notification,  the  Central  Government  shall  give  a  reasonable 
opportunity to the Authority to make representations against the proposed supersession and shall consider 
the representations, if any, of the Authority. 

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,— 

(a)  the  Chairperson  and  other  members  shall,  as  from  the  date  of  supersession,  vacate  their 

offices as such; 

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(b) all the powers, functions and duties which may, by or under the provisions of this Act, be 
exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted 
under sub-section (3), be exercised and discharged by the Central Government; and 

(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted 

under sub-section (3), vest in the Central Government. 

(3) On or before the expiration of the period of supersession specified in the notification issued under 

sub-section (1), the Central Government shall reconstitute the Authority. 

(4) The Central Government shall, as soon as may be, cause a copy of the notification issued under 

sub-section (1) and a full report of any action taken by it, to be laid before each House of Parliament. 

45.  Establishment  of  Pension  Advisory  Committee.—(1)  The  Authority  may,  by  notification, 
establish with effect from such date as it may specify in the notification, a Committee to be known as the 
Pension Advisory Committee. 

(2) The Pension Advisory Committee shall consist of not more than twenty-five members, excluding 
ex  officio  members,  to  represent  the  interests  of  employees’  associations,  subscribers,  commerce  and 
industry, intermediaries, and organisations engaged in pension research. 

(3)  The  Chairperson  and  the  members  of  the  Authority  shall  be  the  ex  officio  Chairperson  and  ex 

officio members of the Pension Advisory Committee. 

(4)  The  objects  of  the  Pension  Advisory  Committee  shall  be  to  advise  the  Authority  on  matters 

relating to the making of the regulations under section 52. 

(5)  Without  prejudice  to  the  provisions  of  sub-section  (4),  the  Pension  Advisory  Committee  may 
advise the Authority on such matters as may be referred to it by the Authority and also on such matters as 
the Committee may deem fit. 

46.  Furnishing  of  returns,  etc.,  to  Central  Government.—(1)  The  Authority  shall  furnish  to  the 
Central Government at such time and in such  form and manner as may be prescribed, or as the Central 
Government may direct to furnish such returns, statements and other particulars in regard to any proposed 
or  existing  programme  for  the  promotion  and  development  of  the  pension  industry  as  the  Central 
Government may, from time to time, require. 

(2)  Without  prejudice  to  the  provisions  of  sub-section  (1),  the  Authority  shall,  within  nine  months 
after the  close  of  each  financial  year,  submit to  the  Central  Government  a report  giving  a  true and full 
account  of  its  activities  including  the  activities  for  promotion  and  development  of  schemes  of  pension 
funds regulated under this Act during the previous financial year. 

(3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be, after they are 

received, before each House of Parliament. 

47. Members, officers and employees of Authority to be public servants.—The Chairperson and 
other  members  and  officers  and  other  employees  of  the  Authority  shall  be  deemed,  when  acting  or 
purporting  to  act  in  pursuance  of  any  of  the  provisions  of  this  Act,  to  be  public  servants  within  the 
meaning of section 21 of the Indian Penal Code (45 of 1860). 

48. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 
lie against the Central Government or the Authority or any officer of Central Government or any member, 
officer  or  other  employees  of the  Authority  for  anything  which is in  good  faith done  or  intended to be 
done under this Act or the rules or regulations made thereunder. 

49. Delegation of powers.—(1) The Authority may, by general or special order in writing, delegate 
to any member, officer of the Authority or any other person subject to such conditions, if any, as may be 
specified in the order, such of its powers and functions under this Act (except the powers under section 
52) as it may deem necessary. 

(2) The Authority may, by a general or special order in writing, also form committees of the members 

and delegate to them the powers and functions of the Authority as may be specified by the regulations. 

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50.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment provided in this Act if he proves that the offence was committed  without his knowledge or 
that he has exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to, any neglect on the part of  any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of the offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a)  ―company‖  means  any  body  corporate  and  includes  a  firm  or  other  association  of 

individuals; and 

(b) ―director‖, in relation to a firm, means a partner in the firm. 

1[50A.  Powers  of  Authority  not  to  apply  to  International  Financial  Services  Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable 
by the Authority under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of 

section 18 of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established 
under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019,  

in so far as regulation of financial products, financial services and financial institutions that are permitted 
in the International Financial Services Centres are concerned.] 

51.Power to make rules.—(1) The Central Government may, by notification, make rules for carrying 

out the provisions of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the salary and allowances payable to and the other conditions of service of the Chairperson 

and whole-time members under sub-section (3) of section 5; 

(b) the allowances payable to part-time members under sub-section (4) of section 5; 

(c) the additional functions which may be performed by the Authority under clause (p) of sub-

section (2) of section 14; 

(d) any other matter in respect of which the Authority may exercise the powers of a civil court 

under clause (v) of sub-section (3) of section 14; 

(e) the procedure to be followed by the authorised officer under sub-section (10) of section 17; 

(f)  the  form  and  manner  in  which  an  appeal  may  be  filed  before  the  Securities  Appellate 

Tribunal and the fee which shall accompany such appeal, under sub-section (2) of section 36; 

(g) the procedure to be followed by the Securities Appellate Tribunal in dealing with an appeal, 

under sub-section(6) of section 36; 

1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 

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(h) the form in which annual statement of accounts shall be maintained by the Authority under 

sub-section (1) of section 42; 

(i) the time within which and the form and manner in which returns and reports are to be made 

by the Authority to the Central Government under sub-section (1) of section 46; 

(j) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, by rules. 

52.  Power  to  make  regulations.—(1)  The  Authority  may,  by  notification,  make  regulations 

consistent with this Act and the rules made thereunder for carrying out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a)  the  time  and  places  of  meetings  of  the  Authority  and  the  procedure  to  be  followed  at  such 

meetings (including the quorum at such meetings) under sub-section (1) of section 9; 

(b) the terms and other conditions of service of the officers and other employees of the Authority 

under sub-section (2) of section 11; 

(c) the regulations to be made by the Authority in respect of pension schemes referred to in clause 
(b) of sub-section (1) of section 12 and the time within which such  schemes should conform to the 
regulations, made under sub-section (2) of that section; 

(d)  the  establishing  of  mechanisms  for  redressing  grievances  of  subscribers  under  clause  (f)  of 

sub-section (2) of section 14; 

(e) the form and manner in which books of account shall be maintained and statement of accounts 

shall be rendered by intermediaries under clause (n) of sub-section (2) of section 14; 

(f) amendment to the National Pension System referred to in sub-section (1) of section 20; 

(g) the  conditions  of  its  purpose,  frequency  and limits  for  withdrawals from  individual  pension 

account referred to in clause (b) of sub-section (2) of section 20; 

(h)  the  conditions  subject  to  which  the  subscriber  shall  exit  from  the  National  Pension  System 

referred to in clause (h) of sub-section (2) of section 20; 

(i) the conditions subject to which the subscriber shall purchase an annuity referred to in clause (i) 

of sub-section (2) of section 20; 

(j) the duties and functions of central recordkeeping agency under sub-section (2) of section 21; 

(k)  the  determination  of  compensation  of  fair  value  of  the  regulated  assets  payable  to  central 

recordkeeping agency under proviso to sub-section (3) of section 21; 

(l)  the  manner  of  receiving  contributions  and  instructions  and  transmitting  them  to  the  Trustee 
Bank  or  central  recordkeeping  agency,  as  the  case  may  be,  and  paying  out  the  benefits  to  the 
subscribers,  under  sub-section  (1),  and  the  regulations  governing  functioning  of  points  of  presence 
under sub-section (2) of section 22; 

(m) the manner in which a pension fund may receive contributions, accumulate them and make 
payments to the subscriber under sub-section (1), the number of pension funds under sub-section (2), 
the functioning of the pension fund under sub-section(3), and the manner of managing the schemes by 
the pension fund under sub-section (4) of section 23; 

(n) the form and  manner in which an application for grant of certificate of  registration shall be 

made and the fee which shall accompany such application under sub-section (2) of section 27; 

(o) the conditions subject to which a certificate of registration may be granted to an intermediary 

under sub-section (3) of section 27; 

(p)  the  procedure  and  manner  of  suspension  or  cancellation  of  certificate  of  registration  of 

intermediaries under sub-section (4) of section 27; 

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(q) the procedure for holding inquiry by an adjudicating officer under sub-section (1) of section 

30; 

(r) the supersession of the governing board or board of directors of the intermediary under sub-

section (2) of section 31; 

(s) the management of affairs of the intermediary by an Administrator under sub-section  (3) of 

section 31; 

(t) the manner of administering and utilising the Subscriber Education and Protection Fund under 

sub-section (3) of section 41; 

(u) the delegation of powers and functions of the Authority to committees under sub-section (2) 

of section 49; 

(v) establishment, duties and functioning of the National Pension System Trust; 

(w) any other matter which is required to be or may be specified by regulations or in respect of 

which provision is to be or may be made by regulations. 

53.  Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  and  every  regulation  made 
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it 
is in session, for a total period of thirty days which may be comprised in one session or in two or more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or 
both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule or regulation. 

54. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not  inconsistent  with  the  provisions  of  this  Act  as  may  appear  it  to  be  necessary  for  removing  the 
difficulty: 

Provided  that  no  order  shall  be  made  under  this  section  after  the  expiry  of  five  years  from  the 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

55. Application of other laws not barred.—The provisions of this Act shall be in addition  to and 

not in derogation of the provisions of any other law for the time being in force. 

56.  Savings.—Anything  done  or  any  action  taken  by  the  Interim  Pension  Fund  Regulatory  and 
Development Authority and Central Government under the Resolutions of the Government of India in the 
Ministry of Finance number F. No. 5/7/2003-ECB&PR, dated the 10th October, 2003 and F.No.1(6)2007-
PR, dated the 14th November, 2008 and notification number F. No. 5/7/2003-ECB & PR, dated the 22nd 
December, 2003, shall be deemed to have been done or taken under the corresponding provisions of this 
Act. 

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